Should We License Mortgage Lenders and Brokers?

I would love some feedback on this topic. Please leave a comment on whether or not you think mortgage lenders and brokers should be forced to participate in a national registration and licensing program. See the article below from Ken Harney with Realty Times.

As the U.S. Senate prepares to push through a major housing bill, possibly as early as Tuesday, one key provision of the measure â€” licensing and registration of mortgage originators across the nation â€” has attracted little attention.

Architects of the legislation and their supporters contend that abusive loan officers who drift from state to state can be kept in check only by keeping detailed information on their rap sheets, consumer complaints, yearly licensing, and educational requirements.

They propose to accomplish this through a huge database on anyone who generates retail home loans at a bank, mortgage brokers, and loan officers at mortgage companies, and even some realty brokers or agents who are compensated by lenders to help originate loans.

Despite a commitment to protect the privacy of individuals included in the database, the proposal â€” and its fingerprinting mandate, in particular â€” is leaving a bad taste in the mouths of critics.